this is "nightly business report" with sue herera and bill griffeth. ♪ what ado week. up, , up, down. stocks take investors on a wild ride, and after all of that things were barely changed. so where do we go from here? . finding growth at a time when the economy may be slowing d stocks are looking for direction, this week's market monitor says you might want to consider what he calls high-quality compans. and political soap box. democrats descend on the iowa state fair with one goal in mind, bring their trade message directly to onece audi farmers. all of that and much more tonight on "nightly business report" for this friday, august 9th. good evening, everyone.

welcome. bill has the evening off. well, wet. made we made it through a week that stockminated by trade and goes were pretty much all over e place with ste sell offs and strong rallies, and today wasn't anyksifferent. sttarted lower after president trump said the u.s. was not ready to strike a trade deal with china and then added to t tension by talking about chinese tech firm huawei. >> wre not going to do business with huawei. we're not doing business with them. i really made the decision. it is muchimpler not to do any business with huawei, so we're not doingh business w huawei. that doesn't mean we won't agree to something if and when we t me de deal, but we're not oing to be doing business with huawei. >> and stocks headed lower. the white house later clarified, saying it was only the government not buying from huawei, and with that stocks recovered a bit. the dow had been down about 280 points and then briefly went sitive, butnded down 90 to

26,287. the nasdaq droed 80 and the s&p 500 was off 19. today's action seemed only fitting onhisild week. [ bell ringing ]. >> a lot of red on the board. >> the dow jones industrial average is down 926 points. >> investors worrying about the u.s./chinarade juarez catting. >> the d jonesndustrial average closes the day down 763 ints. >> wor day of the year for fox. >> a healthy bounceback a day, up about a percent on the s&p. >> there was buying today, back over the 26,000 level and the dow ended 313 points, right near session highs. >> we have regains a little l than half of the losses of yesterday. >> another big sell-off here on >>wall street. hy have things gotten so weird in august? well, two things happened. number one, the federal reserve happened. number two, more tariffs. >> the market pain is a lot less than it was in the first hour or so of trading. >> right now we are only down

212. >> dow jones industrial average closing just fractionally negative. this is the biggest comeback. >> stocks staging a recovery today. >> it is a pretty big move er hi 1.5% almost to the upside. >> with today's gains, even with monday's massive drop, we are now positive for the week. >> the market half i an houro trading, we pulled back. >> dow down triple digits again, down right now about 165 points. we are sitting at session low right now. 2902 is the level. >> we had all nice as i've been standing here in the last few minutes. had to close for a ile, drooping a bit going into the clubhouse, the dow ending the day down 82, s&p 500 down 19 points. >> for the week, despi all of that volatility, all three indexes were off just a. fracti so let's turn now to sandy villere to talk more about the market and why it is so confused. he is a partner and portfolio

manager atvil villerenynd com good to have you here. >> thank you. appreciate it. >> why have things gotten so confusing? >> august is a tough month for the market. i thinkse it is second w for the market throughout the year. it seems like volatility is little escalated. yes, you have a lot of things going on from, you know, eaings to the trade war and certainly the fed. so a lot of things that we're trying to keep our eye on that are creating o a lot volatility, especially trade war related. >> i was going to ask you which is the most importa you of the factors that you just mention evidence. which are you watching most closely ohr whi gclosely or which is thatest variable for you? >> i'm a very bottoms-up oriented stock picker so i'm looking at earnings importantly, but earnings have passed us. we had about 90% of the s&p 500 report irnearnings, so looking forward i'm focused on the trade war. what is ironi is that the trade war and the fed really go kind of hand in hand.

the t uglier trade war gets or the more it escalates, the higher thehe likelihood fed could potentially cut rates in september and maybe october. >> you know, there w twos to think about that from the analysts i have been talking to. one, the trade war if it continues and stretches out or imonious ven more a would force the fed's hand to cut interest rates. i talked to another analyst who said that would really bother the market because it means that ing thatis indic things are worse than we think. what do you think of that argument? >> yes, and they're supposed to be totally independent. i believe the fed completely is, but as the trade juarwar escala you are seein already we have three year lows in manufacturing, you have inflation that's extremely low and you are seeing growth slowdown. looking at earnings year over year, it will be negative, when you look year over year for the second quarter reporting. if the fed is data dependent and they are looking at the outcomes fr the trade war slowing on

all sorts of fronts, then they have to act. >> and then m the bondket seems to be telling a different story, pointing perhaps to a recession. how are you interpreting the bond market and interest rate action this week? >> yes, and the bond marke always seems to be a little smarter than the stock market. so you are seeing the n-ar down at 174 and then the -- you know, the three-month i up at 2%. so that is an inverted yield curve, and oftentimes an inverted yield curve can predict a recession. so it mes me a little bit nervous, but for investors in general when they're looking at where to place their money, you look at the ten-year treasury at 174, the s&p 500 yields about 2% on the index. so kind of makes stocks look attractive. >> indeed. thanks so much, sandy. great t have you witme. >> thank you, sue. sandy villere with villere and company. bond yields have been falling and so have mortgage rates. the latest drop in the rate has lenders scrambling to keep up

with demand. diana olick has more. >> quicken loans just had its best quarter in the company's 34-year history, setting a monthly record in june. quicken said it wasooking to hire about 1,300 employees to handle the new volull. it ishanks to a sharp drop in mortgage rates that started in april and accelerated this month. that causedden refinance boom that most lenders hadn't expected. n>> if you think back eo the fourth quarter, we were all alking about anticipating, you know, rate hikes going into 2019. phones havest bank, been ringing off the hook, stretching capacity. >> we are really looayng at to preserve our client experience, which may mean forc umers to be aware that it might take you a little longer to get through the process and that might mean taking a little longer to get holf a mortgage professional to assist you. >> borrowers aren't just looking he lower monthly payments. some want different loan products with different terms, while othersay want to

consolidate debt like student loans and credit card debt. whatever the reason, re-fis are rising. >> refinancing is a no brainer because you can save thousands of dollars a every month you have more money in your pocket. >> rates have been volatile so borrowers shouldn't try to wait hed time market. instead, get a lender readyd n ke sure the lender is ready to jump. for nrk"nightly bs report" i'm diana olick in wall. with the lower bond yields in the otlight,nvestors are on the hunt for return and one place they are looking is muni bonds. seema mody has more. >> reporter: the search for yield is driving investors into different parts of the bond market, specifically debt issued by states and municipalities to finance specifi projects like airports and schools. muni bonds have already seen record inflows this year of $52 billion, on pace to surpass the $70 billion of inflows seen in 2009. and if the fed continues to cut interest rates, wall street strategists eect demand to

stay strong. in addition to low rates, changes to the tax w codech limited the c deductionimed by households in high tax states like new york has pushed t investor look for tax-free income. the salt cap was a key component of the tax reform bill. experts point out most municipal bonds are exempt from income tax, and depending on the bond in many caseslso exempt from taxation by the issuer's home state. a surge in investor demand comes as bond issuances have come down. total bon issuance has fallen from $440 billion in 2017 to 338 billion in 2018. hat's according to muni market analytics. still, four high profile projects coming to market in f august, the sncisco transit system, pennsylvania rnpike, common spirit and adele's airport. so far the muni income fund has returned 5% to investors. whileuni bonds can often be

seen as a riskier part of the bond market to invest in, the number oft defaultse city and state levels have declined. in fact, only 41 defaultsn 2018, the lowest on record, according to tripp kaiser at muni market analytics. in 2019 there have been 33 defaults.st l, financial advisers caution to not focus on just the tax-free income b to review the quality of each bond. plus, if interest rates turn around, it could make muni debt a less likely place to park you money. si seema mody. inflation on the w le was flat year over year. meanwhile, inflationot here is a probl a problem, for know deplace is a growing concern in china. prices are contracting in china for the first time i three years while consumer prices were

pushed higher by surging prices in vegetables and poot. anher risk to china' economy, the tense situation going on in hong kong between the government and protesters. yu anyone yoon more from beijing. >> reporter: hundreds of protesters have gathered at the hong kong airport handing out leaflets to raise awareness about their concerns to the city's visitors. the sit-in, which is expected to last through sunday, is the latest of a series of protest that started as a march against extradition bil which have moved on to protest beijing's encroachment into the city. today the leader carrie lam called foralm but showed no willingness to make concession to the protesters. lam warned that the downward pressure was like a tsunami. the problems in hong kong are filtering into the already-tense u.s./china relationship. beijing has been characterizing

the process as organized by foreign powers, in particular an american diplomat in hong kong. chinese state tv has described the political officer as a black hand creating chaos in hong kong after she met with a protest leader. a newspaper called her a lowof prile expert on subversion and publishedhotos and personal details ofnd her a her family. a state department spokesperson called china a thuggish regime for releasing the information, and today the foreign ministry hong kong office responded saying the blatant slander against china exposed the u.s.'s gangster logic and thinking. on top of the trade conflict with huawei, the hong kong situation is another risk facr for u.s./china ties. for "nightly business report", i'm eunice yoon in beijing. up next, filling the gap. ♪ these airplanes are partef irline industry handling the 737 max crisis. what are they doing? i'm phil lebeau outside of

montreal, canada. that story coming up on "nightly business report". ♪ ♪ nearly five months after the 737 max,ded the boeing airlines around the world are scrambling to find replacement ples. thoselanes are often leased from other airlines or charter iation companies w find themselves sitting in an enviable position with extra planes and high demand, especially in canada. phil lebeau has more from quebec. of the ter: this is o hottest planes in the commercial jet market, a 737-200, with more than00 boeing 737 max planes

parked airlineshat plan t fly them have been scrambling to find replacement jets. great newsor nolander aviation outside of montreal. it is leasing 737s like this to an aline in toronto needing replacement planes. >> we have a lot of requests from many airlines that don't have enough capacity to do their charter flights on the weekends or their regular or providing charter flights for the airline. >> airlines looking to cover their schedule are pushing up short-term leasing rates, in particular for older boeing 737s. often airlines will lease the plane and pay a crew to fly it. it hired aatarir to fly some of its flights. passengers probably w't notice the change. >> they are getting on a fusela, they doesn't see the color scheme. they are walking down a jet way.

maybe once they get into the seats they think, oh, last times i flew i w in this kind of seat, now i am in a different seat. but really, youknow, i suppose they are just happy to go from a to b. >> for nolander aviation, the 737 max crisis has lifted demand forts fleet of planes to a new level, and executives believe that demand iste exp to continue at least through the holidays. >> i think it was after a few weeks after the issue with the 737 max started to get very publicized, we started havingbo requests our availability for the summer, and then it changed to will you still be available during the fall and now we're talking about christmas time >> reporter: an airplane leasing market lifting off as airlines adjust to life witho the max. phil lebeau, "nightly business report", mirabelle, quebec. an anonymous letter by a whistleblower tanks mattel. that's where we begin tonight's market focus.

ling ay maker will be p bond sale after receiving a letter and now will be cancelling the sale of senr notes due in 2027. the company plans to investigate the matters in the letr but did not disclose what they were. the stock plunged nearly 16% to 1131. nectar therapeutic said there were manufacturing issues in two batches of experimental cancer drugs given to pat in a trial. separately, the biotech company reported a narrower than pected loss but missed revenue estimates. nectar plummeted more than 29% to 20.92. jcpenney received a notice from the new york stock exchange that the company has six months to get its price above $1 or get shareholder approval of a reverse stock split to avoid being delisted. the strugglin retailer has seen sales drop more than 70% in the last today jcpenney fell more than 13% to $0.60.

pg&e posted mixed resultsbe ings earnings estimates but shy on revenue. the company said t losses were due to losses related to the california fire and bankruptcy. it fell more than 2% to 2.18 dropbox beat wall street's forecast for earnings and revenue, but the company saw a drop in its average revenue per user, which is a key t factor to company's growth. that sent shares down nearly 13% to 18.71. and uber shares had one of the worst daysince the company went public after the company reported a massive loss in its latest earnings after the bell yesterday. yet the ceo is still positive about the rest of this year. >> the back half of the year you're going to see, if trends stay the same, revenue groh in cess of 30%. and when you look at profitability, we beat our own internal tarkgets, we beat stret

targets as well. we came in at a loss of 356 million, but the losses are improving a r takees are improving. >> shares dpped to 40.05. on that note we havke the m monitor with names of stocks he says are reasonably cheap and could grow double digits over the long term. he is the senior investment analyst at wealth adviser. welcome back, david. nice to seeai you >> good to see you. >> you say you try to identify companies with open-ended growth opportunities, which is a challenge in this market environment, but you like delta airlines. why? >> yes, delta airline is the best-run airline in the world. they are transforming the traveling experience by investing the most in chnology. so now and in the future when you travel, you will not need passports or tickets. it is just every airport will have sbiometri you show your face to the camera and that's it. it is also improving, all

preordering for meals before you board on your airplane and things like that. it is the best-run company in the airline industry. we think that the t travel amount of travelers is going t grow over -- so think about, you know, light duty, things like welding or, you know, transporting goods om onerea to another. and so we think we're at the beginning stages of this industrial revolution and they are leading the way on th. >> finally, gardner, which is basically a tech place,n.t. play. >> yes, yes. so if you look at the stock for the past five years ty had big run, but in the past few weeks it dropped over 20%. we think it is a good entry point because they held ceos around the wld in technology.

they provide research consulting to make better decisions and technology decisions. so, you know, they are helping all of the company's retailers, banks for growth in the future. >> how do you feel about the economy and the market overall, david, especially given the volatility thate saw this week? >> yes, you know, we think all of t volatility i related to the trade talks and how, you know, the slowdown of the global gd, abou gdp. we think eventually there will be a trade agreement, it will work itself out, probably before the election. but if you are a long-term investor that's the view we have. >> has it influenced the w you are allocating capital? >> for thoseortfolios we think are overweighted in equities, we try to maybe sell a little bit equity and keep a little more cash on the sidelines. but, you know, we are long-term

investors. we are looking three to five years ahead. >> okay. >> we think the market will be higher for now. >> david, thank you so much. >> thank you. >> with cenal wealth advisers. coming u focusing on the farmers. >> reporter: more than a million people come to the iowa state fair every year. now many are farmers seeking relief from the tradeat war. demo contenders are here to try to wind their votes. we will tell you how coming up on "nightly business report". ♪ ♪ the iowa stateair will become a focal point for trade policy over the next few days as all of the 2020 democratic presidential hopefuls take their

policy messagesirectly to farmers impacted bthe u.s. trade agenda. kay the fairsche is at ground this evening. >> we are the most unique idea. >> reporter: you will find more than 20 democrats running for president, testing their stump fair,es at the iowa state connecting on the ground with swing voters, many of whom are farmers caught in the crosshairs of the trade war. matt paul is one of the state's leading demratic strategists. he says thesi ts mean the votes are up for grabs. >> tensions are about as high as they can get. >> reporter: they now say it is more than viefl. >> i think it will cause many to go bankrupt. >> the bankers are going to say you need to liquidate your assets in order to nntinue. >> w sixth generation farmer says, i hopey son

doesn't become a seventh we have an issue. >> reporter: he has grown his products nearby. >> we are at the point where we are starting to suck air. we need financial assistance to maintain our productivity in what we are doing. >> reporter: many eiowans including republican senator chuck grassy received aid to him them stay afloat. grassley said his voters areic ng by trump. >> i have not seen any departure from the attitude that farmers know that this i president the first one to tackle china cheating the americans out of a lot of things. >> reporter: president trump says he isn no rush take a deal with china and that the u.s. holds all of the cards, but democrats are hoping to turn the tide of the hawkeye state before thesaucus six mon away. for "nightly business report", i'm kayla tausche in des moines,

iowa. billionaire stephen ross threw a fundraiser today tor presidenmp. ross is the founder and the chairman of the parent company of the gym's equinox and soulcycle. word of the event hased to calls for boycotts and membership cancellations. as robert frank tess ulls us, everything political comes wh business risk. >> reporter: billionaire, real estate and sports tie ck stephen ross defending his decision to hold a fundraiser for the president after customers threatened to boycott hisw, company. no ross is the chairman of the related companies which owns equinox, fitness and soulcycle, and he is a part owner of the miami dphins. now, news that ross would be hosting a fundraising lunch for president trump friday with tickets as mh as $250,000, touched offer a social media firestorm. celebrit bs likelie eichner, kenny stills and chrissy teigen called o customers of equinox and slcycle to pull business

in proncst. they dis themselves from their chairman and owner saying they have nothing to do with thn and don't support it and added they believe in tolerance and equality and always will stay true to the vues. ross issued his own statement saying, quote, i have always been an active participant in the democratic process. i have known donald trump for 40 years, w and while agree on some issues we strongly disagree on many others, a i have never been bashful about expressing my opinions. now, brand experts say in today's politically-charged world donating to the upcoming presidentialig cam carries extra risks for donors and companies, especially when the candidate has differing views oi cs from the customer base. >> the issue here is if you hold yourself out as a business to have certain values and you have a certain culture -- >> are they -- >> then you need that in alignment. in >> reporter: e and soulcycle declined comment on how many members cancelled.

for "nightly business report", i'm robert frank. and before we go her is another look at the final day's numbers on wall street. the dow had been dn about 280 points, then briefly went thsitive but ended down 90 to 26,287. nasdaq dropped 80 and the s&p 500 was off 19. that is "nightly business report" for tonight. i'm sue herera. thanks for joining us. have a great weekend. we'll see you here monday. ♪ ♪

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nada tawfik.